1. A total of $3,700 in supplies was purchased during the year. At the end of the year $900 of the supplies were left. The adjusting entry needed at the end of the year is:

a. Debit supplies Expense $3,700; credit Supplies $3,700

b. Debit Supplies Expense $2,800; credit Supplies $2,800

c. Debit Supplies Expense $900; credit Suplies $900

d. Debit Supplies $2,800; credit supplies Expense $2,800

2. MacGyver Company bought equipment on January 3, 2019 for $34,200. At the time of purchase, the equipment was estimated to have a useful life of 5 years and a salvage value of $1,080. Using the straight-line method, the amount of one year's depreciation is:

a. $1,080

b. $5,700

c. $460

d. $6,624

3. The equipment costing $14,500 with an estimated salvage value of $1,060 and an estimated life of 4 years was purchased on October 31, 2019. Using the straight-line depreciation method, what is the amount of depreciation expense to be recorded at December 31, 2019.

a. $280

b. $3,360

c. $560

d. $1,060

4. On September 1, 2019, Jay Walker Company purchased a one-year Insurance policy for $1,140. The correct adjusting entry on December 31, 2019 is:

a. Debit Insurance Expense $380; credit Prepaid Insurance $380

b. Debit Insurance Expense $855; credit Prepaid Insurance $855

c. Debit Prepaid Insurance $95; credit Insurance Expense $95

d. Debit Prepaid Insurance $1,140; credit Insurance Expense $1,140

5. On October 25, 2019, the company paid $34,800 rent in advance for the six-month period. (November 2019 through April 2020). On December 31, 2019, the adjustment entry for expired rent would include:

a. a $11,600 debit on Rent Expense

b. a $5,800 credit to Cash

c. a $34,800 credit to Rent Expense

d. a $5,800 credit to Prepaid Rent

Answer rating: 100% (QA)

1 b Debit Supplies Expense 2800 credit Supplies 2800 Suppli... View the full answer